3i has agreed to back the buyout of Active Pharmaceutical Ingredients, a world-wide developer and supplier of specialist active pharmaceutical ingredients and a division of NYSE-listed Alpharma Inc. (NYSE: ALO), in a deal valued around US$395 million. The transaction remains subject to the approval of the regulatory authorities.
INFO SOURCES
Alpharma Inc. (NYSE: ALO); 3i Group
FIRMS
Alpharma Inc. (NYSE: ALO) is a global specialty pharmaceutical company with leadership positions in products for humans and animals. Alpharma is presently active in more than 60 countries. Alpharma has a growing branded pharmaceutical franchise in the U.S. pain market with its KADIAN(R) (morphine sulfate extended-release) Capsules, and the FLECTOR(R) Patch (diclofenac epolamine topical patch). In addition, Alpharma is among the world's leading producers of several specialty pharmaceutical-grade bulk antibiotics and is internationally recognized as a leading provider of pharmaceutical products for poultry and livestock.
3i Group is a world leader in private equity and venture capital. We focus on buyouts, growth capital, venture capital, infrastructure and Quoted Private Equity and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
The 3i European Buyout Business is a leader in the European mid-market. We lead mid-market buyouts up to €1bn using insight from our local knowledge, international connections, and our sector teams. Managing €3bn invested in over 60 companies across Europe, the business invests in all sectors, with a particular focus on media, healthcare and business support services. 3i recently raised a €5bn fund, the largest fund in Europe dedicated to mid-market buyouts.
Active Pharmaceutical Ingredients, is a world-wide developer and supplier of specialist active pharmaceutical ingredients and a division of NYSE-listed Alpharma Inc. (NYSE: ALO). The Norway-based business, under the leadership of Carl-Åke Carlsson, is a leading company in the fast-growing injectable generics market. Its comprehensive product portfolio includes active ingredients and finished dosage forms in a number of important antibiotic products such as Vancomycin, Bacitracin and Polymyxin. The Active Pharmaceutical Ingredients business has its headquarters in Oslo as well as manufacturing facilities in Oslo, Copenhagen, Budapest and Taizhou (China). Its approximately 700 employees generated approximately US$138.7 million in revenues in the first nine months of 2007.
ADVISORS
Banc of America Securities LLC acted as financial adviser and Cravath, Swaine & Moore LLP acted as legal adviser to Alpharma in this transaction.
Advisers to 3i in the transaction include Merrill Lynch, Linklaters, PwC, Marsh and ERM. Debt financing has been fully underwritten by GE (Global Coordinator), CALYON Crédit Agricole CIB, Danske Bank, European Capital Financial Services Limited and HSH Nordbank AG, Nordic Area.
NOTE
Alpharma Inc. was formed in 1994 through the restructuring of A.L. Laboratories Inc., Dumex A/S and Apothekernes Laboratorium AS.
PEOPLE
Bernie Schuler, Lead Partner Healthcare at 3i.
3i Industrialist in Residence Peter Chambré will be appointed a non-executive chairman to the company upon deal completion.
Carl-Åke Carlsson, Active Pharmaceutical Ingredients' Chief Executive Officer.
Supporting Material
